Feb. 10, 2026

In December, the Sioux Falls and Rapid City metro areas lost their frequent spots as the locations with the lowest unemployment rates in the country.

The Sioux Falls metro area rate was 2.3 percent, and Rapid City’s was 2.2 percent, both higher than the 1.9 percent rates recorded in the Alabama metro areas of Decatur and Huntsville. Several other metro areas in that state and ones in Hawaii, Indiana and Vermont had rates lower than or the same as Sioux Falls, according to the U.S. Bureau of Labor Statistics.

The November unemployment rate for Sioux Falls was 2 percent, the lowest in the country. Rapid City’s rate was the next lowest at 2.1 percent.

For the Sioux Falls metro area, which includes Minnehaha, Lincoln, McCook and Turner counties and Rock County in Minnesota, the 2.3 percent rate in December represents 4,078 unemployed people, according to the South Dakota Department of Labor & Regulation. In November, the number of unemployed was 3,547.

The jobless rate, which is not seasonally adjusted and is preliminary, represents residents who do not have jobs, have actively looked for one in the past four weeks and are available to work. It also includes those who have been laid off temporarily.

A year ago, the metro area jobless rate was 1.8 percent, with 3,245 unemployed people.

The total labor force for the Sioux Falls MSA, those who are employed and unemployed, was 175,366 in December, a slight decrease from 175,484 in November and down from 175,720 a year ago.

The labor supply, those who would be available to staff a new or expanding business, was estimated at 18,725 people in the metro area, up from 18,220 in the prior month. That includes people who are not working and those who would like to change jobs.

The number of job openings in the Sioux Falls MSA dropped to 9,717 in December, according to the state’s virtual labor market data system. There were 10,633 open positions the previous month. A year ago, there were 12,130 openings.

Nonfarm wage and salaried worker levels in the Sioux Falls MSA dropped by 200 people to 179,900 in December compared with the previous month. The largest decline was 3.8 percent in the mining, logging and construction category with 500 fewer jobs, followed by 1.7 percent in professional and business services with 300 fewer jobs. The biggest percentage increase – 2.5 percent — was in transportation, warehousing and utilities, an increase of 200 jobs.

Compared with a year ago, the overall nonfarm wage and salaried worker level in the MSA was up by 400 people.

South Dakota’s unemployment rate was 2.2 percent in December, the lowest in the country along with Hawaii.

The District of Columbia had the highest unemployment rate at 6.7 percent, and the next-highest rate was in California at 5.5 percent.

South Dakota’s jobless rate, which is seasonally adjusted, represents 10,600 people who do not have jobs, have actively looked for one in the past four weeks and are available to work, along with those laid off temporarily, according to the state Labor Department. In November, the rate was 2.1 percent and there were 10,300 unemployed South Dakotans.

A year ago, the rate was 1.9 percent, and there were 9,100 unemployed residents.

In December, South Dakota’s labor force was 492,600, an increase of 300 people from November. A year ago, it was 490,700.

The labor supply, those who would be available to staff a new or expanding business, was estimated at 53,615 people. That’s up from 52,605 people in November and includes people who are not working and those who would like to change jobs.

The national unemployment rate was 4.4 percent in December, compared with 4.1 percent a year ago. It was 4.6 percent in November.

At upcoming Career Connect Thursdays in Sioux Falls, job seekers can have walk-in interviews with local employers that are hiring. The events are hosted by Sioux Falls Job Service from 10 a.m. to 1 p.m. at Sioux Falls One Stop, 1501 S. Highline Ave. February dates are:

• Feb. 12, Harvard Integrations
• Feb. 26, Sanford Health

To view open positions before the events, visit southdakotaworks.org.

Businesses interested in participating in future events should contact Sioux Falls Job Service at 605-910-4833 and speak with Paul Robson, business services specialist.